How the Private Label Profit Calculator works
Private label products have two profit profiles. During launch you spend heavily on PPC and you are still paying off photography, design and samples. Once ranked, ad spend drops and the one-off costs are behind you.
This calculator shows both numbers so you can judge the product on its steady-state economics while budgeting realistically for the launch loss.
Formula
- Amortized one-off cost per unit = (Photography + Design + Other) ÷ First N units
- Launch profit = Price − Landed cost − Amazon fees − Launch PPC − Returns − Amortized one-off − Misc
- Steady profit = Price − Landed cost − Amazon fees − Steady PPC − Returns − Misc
- Break-even ACoS = (Steady profit + Steady PPC) ÷ Price × 100
Example
About $9 steady-state profit (32% margin) but only about $3 per unit during launch once 25% PPC and $2 of amortized creative are counted.
Selling price: 27.99Amazon category: home_kitchenLanded cost per unit: 6.2FBA fulfillment fee: 4.75Launch PPC % of price: 25Steady-state PPC % of price: 10Photography: 600Design, branding, packaging artwork: 400Amortize over first N units: 500Return rate %: 3
Frequently asked questions
What margin should a private label product have?
At least 25–30% net at steady state, because launch costs and later price competition eat into it.
Why amortize over the first order?
It gives a fair per-unit picture of the launch. After the first order sells through, those costs are fully paid.